Great post, My year off to a good start. Completed the bulk of building work on my PPOR, just putting up and knocking down a few internal walls and blocking up some doors, painted half the house (inside) so far, and generally taking it one weekend at a time.Took some time off work for a proper holiday, for all of April.Used the holiday as a good…[Read more]

What about a ‘saniflow’ unit or similar? They hook into your normal waste pipe rather than sewerage line… Anyone used one before?

OK so feel free to pick me apart if I'm wrong on this one, because I (sacreligious) have never read Steve's books…. so am unfamiliar with the 11 second concept.But I just punched your no's into the commbank calculator and got a very different result.The weekly repayment came out at only 240/wk.So by the time you take off 20% deposit, it c…[Read more]

ummester wrote:
1. Some cities – Melbourne, Sydney, Canberra – do not have 200k units, your pushing to find them at 300k.2. Affordable has been factually qualified outside Australia as being 4x the average income or less. Of course, we are different, so our affordability levels must also be:)grimnar – 5x income is not affordable by global…[Read more]

ummester wrote:

Dan42 wrote:

ummester wrote:
say a 500k car = a 10mil house, where are the houses that equal 5k and under cars?Oh, and BTW, the difference between a 500k and 5k is proved by the qulaity of the vehicle. How does that work with housing? You can get a 5k car within 30km of a city:) And cars depreciate with age – as houses…[Read more]

I should add, I believe property is definately affordable.I'm 27 years old, and I bought my first house at 21. Then I had a ex-g/f that wanted to sell it, and I couldn't afford it on my own. We walked away with a few grand in hand… then I bought a car… and then I found myself at 25 with no money to my name, a car loan, and an average income…[Read more]

Houses do depreciate with age. But land appreciates IAW demand, and so does the sqm available in housing.If I were to buy a brand spankin new house in Milton, QLD. I will pay mostly for the land, partly for the sqm of useable space, and partly for the level of finish.10 years from now if I sell that house without doing any maintenance on it I c…[Read more]

For the restumping:Allow at least $500 per stump to replace when using a professional… that was the quote price I had 2 months ago in QLD (ipswich). But you could possibly encounter higher depending on who you use to do it.Full restumping for my 2 bedroom queenslander was quoted at around 15k, with 30 odd stumps, which matches up with that $5…[Read more]

Exactly right… it's easy to say "I'll go with the one that'll make me the most money", but the practicalities are often prohibative.But you have to start somewhere!! : )

Oh, I should add too… Part of the problem with selling the rear block is the appearance of the front block… If you have sold it to someone and they decide to park half a dozen car bodies in the front yard, it's not going to do you any favours!!If you enter into a strategy with the intention of keeping a rear block, you can mitigate that risk b…[Read more]

Hi PJ,It really depends… As in life, there are too many variables!If it were me, I would be looking at how much potential profit there is in the deal either way, and what my goals are. Then weighing up whether its worth the risk/stress.As for the pros and cons, some I can think of:Building a house:Pro: – Easier/quicker to sell than vacant land,…[Read more]

Another take on that strategy that you could consider, if cash flow is tight, is to sell off the front property and use the rear property as your investment.As Lockymac says, the rear block is often times harder to sell than the frontage block… So if cashflow is a problem for you, then perhaps a more viable solution would be to:1. Buy the lot;2.…[Read more]

Agree with Dwolf.I live in Ipswich area, and the ipswich city council are always happy to talk to you about any question. As Dwolf says, it certainly helps to have a read of the planning documentation… That way you can approach them with specific questions and clarifications, rather than just going "So I'm thinking of subdividing a block".

Oh… I am poor : (Wait… I already knew that… THANKS FOR REMINDING ME Nicolas!!!

Hooray, cheaper houses!!Oh, wait up… This article is specifically relevant to units located in hotels and resorts, and specifically those in Cairns… I reckon there is a fairly limited demand for those among the residential buyers… I mean, sea breazes are nice but generally a kitchen sink helps when you're trying to prepare dinner for 4…B…[Read more]

orks wrote:
Correction – It's how high risk investors operate.

All investment carries risk.The only question is whether the return is worth the risk?Personally, I would consider going in with three other investors much higher risk than borrowing money on my own home to buy an investment property… I know I am reliable, and I know I have…[Read more]

Also if you are a couple/family, think about whether you really 'need' 2 cars.My partner and I just got rid of our second car because it was costing us a fortune… even without loan repayments or the occasional fuel expense the car was costing us $40-50/wk to leave it sitting in the driveway.Funny to think about it actually, the number of yo…[Read more]

I should clarify further… And financial types can explain better… If you do 'cross collatoralise' your IP against your PPOR, you will essentially be borrowing the full amount against the investment property. You will resultantly be paying interest on every penny you borrow, but it will all be tax deductable interest. If you take out a line o…[Read more]

wblack wrote:
Thank you v8ghia, so it fair to assume that it's better to use our cashas a deposit, rather than our equity?

Not necessarily… I take it you are trying to borrow from your Principal Place of Residence (PPOR) to buy an investment?If so, you may want to check with a tax accountant whether you can claim deductions on the…[Read more]

I should add, I have only bought a couple of houses before but each time I ended up having to come up with last minute cash to resolve some sort of unforseen expense that my broker, bank manager, or myself did not count on (or was calculated incorrectly)… So make sure you have what you need to get the job done, and leave a little breath…[Read more]